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Discussion Issues and Derivations
Working Capital, Net Working Capital and Non-Cash Working Capital
Working capital is sometimes used to refer only to current assets, while net working capital is defined to be the difference between current assets and current liabilities. Non-cash working capital looks at the difference between non-cash current assets and current liabilities.
In investment analysis, increases in working capital are viewed as cash outflows, because cash tied up in working capital cannot be used elsewhere in the business and does not earn returns. It is the "does not earn returns" component of this definition that would lead us to look at non-cash working capital. Firms with significant cash balances today, especially in the US, earn market returns on their cash (by investing in at least T.Bills0). Thus, the cash is productive and changes in the cash should not affect our cash flows.
To the degree that cash cannot be invested to earn market returns, and is needed for day-to-day operations, it is appropriate to look at changes in net working capital, with cash included.
Operating versus Capital Expenditures
ccountants draw a distinction between expenditures that yield benefits only in the immediate period or periods (such as labor and material for a manufacturing firm) and those that yield benefits over multiple periods (such as land, buildings and long-lived plant). The former are called operating expenses and are subtracted from revenues in computing the accounting income, while the latter are capital expenditures and are not subtracted from revenues in the period that they are made. Instead, the expenditure is spread over multiple periods and deducted as an expense in each period - these expenses are called depreciation (if the asset is a tangible asset like a building) or amortization (if the asset is an intangible asset like a patent or a trade mark).
While the capital expenditures made at the beginning of a project are often the largest and most prominent, many projects require capital expenditures during their lifetime. These capital expenditures will reduce the cash available in each of these periods.
Depreciation, Amortization and Other Non-cash Charges
The distinction that accountants draw between operating and capital expenses leads to a number of accounting expenses, such as depreciation and amortization, which are not cash expenses. These non-cash expenses, while depressing accounting income, do not reduce cash flows. In fact, they can have a significant positive impact on cash flows, if they affect the tax liability of the firm. Some non-cash charges reduce the taxable income and the taxes paid by a business. The most important of such charges is depreciation, which, while reducing taxable and net income, does not cause a cash outflow. Consequently, depreciation is added back to net income to arrive at the cash flows on a project.
For projects that generate large depreciation charges, a significant portion of the cash flows can be attributed to the tax benefits of depreciation, which can be written as follows
Tax Benefit of Depreciation = Depreciation * Marginal Tax Rate
While depreciation is similar to other tax deductible expenses in terms of the tax benefit it generates, its impact is more positive because it does not generate a concurrent cash outflow.
Amortization is also a non-cash charge, but the tax effects of amortization can vary depending upon the nature of the amortization. Some amortization, such as the amortization of the price paid for a patent or a trade mark, are tax deductible and reduce both accounting income and taxes. Thus, they provide tax benefits similar to depreciation. Other amortization, such as the amortization of the premium paid on an acquisition (called goodwill), reduces accounting income but not taxable income. This amortization does not provide a tax benefit.
Capital Expenditures and Depreciation
In project analysis, it is important that assumptions about capital expenditures, depreciation and working capital be consistent. For instance,
- If the project is assumed to have a very long life or an infinite life, the firm will have to make much larger capital maintenance expenditure. As a simple rule of thumb, when projects have infinite life, the capital maintenance expenditures should approach depreciation. This will, if nothing else, ensure that the book value of the investment does not decline. More importantly, it is necessary to preserve the earning power of the assets
- For projects with shorter lives, it is possible that capital expenditures occur up front, and that depreciation in subsequent years is much greater than capital expenditure. The book value of the investment will decline over time to the salvage value.
ROC, Cost of Capital, NPV and EVA
Economic value added is a value enhancement concept that has caught the attention of both firms interested in increasing their value and portfolio managers, looking for good investments. EVA is a measure of dollar surplus value created by a firm or project and is measured by doing the following:
Economic Value Added (EVA) = (Return on Capital - Cost of Capital) (Capital Invested)
where the return on capital is measured using "adjusted" operating income, where the adjustments eliminate items that are unrelated to existing investments, and the capital investment is based upon the book value of capital, but is designed to measure the capital invested in existing assets. Firms which have positive EVA are firms which are creating surplus value, and firms with negative EVA are destroying value.
In the context of investment analysis, the present value of the EVA created by a project should be equal to the net present value of the project.
ROE, Cost of Equity and Equity EVA
While EVA is usually calculated using total capital, it can be easily modified to be an equity measure:
Equity EVA = (Return on Equity - Cost of Equity) (Equity Invested in Project or Firm)
Again, a firm which earns a positive equity EVA is creating value for its stockholders while a firm with a negative equity EVA is destroying value for its stockholders.
Equity EVA may be the better way of thinking about value created for firms where capital is tough to measure (such as banks and insurance companies).
Equity Analysis versus Firm Analysis
An investment project can be analyzed in terms of all of the capital invested in the project (firm) or just from the perspective of the equity investors in the firm. If done consistently, cash flows to the firm discounted at the cost of capital or cash flows to equity discounted at the cost of equity, the two approaches should yield similar results if the following conditions hold:
a. The project is financed using the same mix of debt and equity as is used in the computation of the cost of capital.
b. The debt is assumed to have an interest rate equal to the pre-tax cost of debt
Currency Effects on Investment Analysis
One of the debates that analysts often engage in when doing investment analysis is whether the analysis should be done in one currency or another. Intuitively, an analysis of whether a project is a good or bad one should not depend upon what currency the analysis is done in. The important fact to keep in mind is that cash flows and the discount rate have to be estimated consistently. To convert the analysis from one currency to another would have required the following steps:
Step 1: Estimate the expected exchange rate for each period of the analysis.
While forward rates might be available for some currencies for a few periods, there are very few cases where forward rates will be available for the entire project life. To estimate the expected exchange rate, draw on the purchasing power parity theorem that argues that changes in exchange rates between two countries will reflect differences in inflation in those countries.
Step 2: Convert the expected cashflows from one currency to the other in future periods, using these exchange rates.
Step 3: Discount the expected cashflows at a discount rate, based upon the same currency.
Real versus Nominal Investment Analysis
Investment analyses can be done in terms of real or nominal cash flows. The discount rates have to be defined consistently - real for real cash flows and nominal for nominal cash flows. If done consistently, each analysis should yield the same net present value.
The choice between nominal and real cash flows therefore boils down to one of convenience. When inflation rates are low, it is better to do the analysis in nominal terms since taxes are based upon nominal income. When inflation rates are high and volatile, it is easier to do the analysis in real terms.
Given a choice, I would rather do the analysis in nominal terms, since taxes and financial statements are usually based upon nominal results.
Net Present Value, IRR or Modified IRR
For firms with no capital rationing constraints, net present value is clearly the choice that will maximize firm value the most. For firms with significant capital rationing constraints that will continue into the future, the IRR is likely to be the best solution. For firms with significant capital rationing constraints that will ease over time, the modified IRR is the best solution.
Corporate Strategy and Project Quality
In the process of analyzing new investments in the preceding chapters, we have contended that good projects have a positive net present value and earn an internal rate of return greater than the hurdle rate. While these criteria are certainly valid from a measurement standpoint, they do not address the deeper questions about good projects including the economic conditions that make for a "good" project and why it is that some firms have a more ready supply of "good" projects than others.
Implicit in the definition of a good project –– one that earns a return that is greater than that earned on investments of equivalent risk –– is the existence of super-normal returns to the business considering the project. In a competitive market for real investments, the existence of these excess returns should act as a magnet, attracting competitors to take on similar investments. In the process, the excess returns should dissipate over time; how quickly they dissipate will depend on the ease with which competition can enter the market and provide close substitutes and on the magnitude of any differential advantages that the business with the good projects might possess. Take an extreme scenario, whereby the business with the good projects has no differential advantage in cost or product quality over its competitors, and new competitors can enter the market easily and at low cost to provide substitutes. In this case the super-normal returns on these projects should disappear very quickly.
An integral basis for the existence of a "good" project is the creation and maintenance of barriers to new or existing competitors taking on equivalent or similar projects. These barriers can take different forms, including
a. Economies of scale
: Some projects might earn high returns only if they are done on a "large" scale, thus restricting competition from smaller companies. In such cases, large companies in this line of business may be able to continue to earn super-normal returns on their projects because smaller competitors will not be able to replicate them.
b. Cost Advantages
: A business might work at establishing a cost advantage over its competitors, either by being more efficient or by taking advantage of arrangements that its competitors cannot use. For example, in the late 1980s, Southwest Airlines was able to establish a cost advantage over its larger competitors, such as American and United Airlines by using non-union employees, the company exploited this cost advantage to earn much higher returns.
c. Capital Requirements
: Entry into some businesses might require such large investments that it discourages competitors from entering, even though projects in those businesses may earn above-market returns. For example, assume that Boeing is faced with a large number of high-return projects in the aerospace business. While this scenario would normally attract competitors, the huge initial investment needed to enter this business would enable Boeing to continue to earn these high returns.
d. Product Differentiation
: Some businesses continue to earn excess returns by differentiating their products from those of their competitors, leading to either higher profit margins or higher sales. This differentiation can be created in a number of ways - through effective advertising and promotion (Coca Cola), technical expertise (Sony), better service (Nordstrom) and responsiveness to customer needs.
e. Access to Distribution Channels
: Those firms that have much better access to the distribution channels for their products than their competitors are better able to earn excess returns. In some cases, the restricted access to outsiders is due to tradition or loyalty to existing competitors. In other cases, the firm may actually own the distribution channel, and competitors may not be able to develop their own distribution channels because the costs are prohibitive.
f. Legal and Government Barriers
: In some cases, a firm may be able to exploit investment opportunities without worrying about competition because of restrictions on competitors from product patents the firm may own to government restrictions on competitive entry. These arise, for instance, when companies are allowed to patent products or services, and gain the exclusive right to provide them over the patent life.
Quality of Management and Project Quality
In the preceding section we examined some of the factors that determine the attractiveness of the projects a firm will face. While some factors, such as government restrictions on entry, may largely be out of the control of incumbent management, there are other factors that can clearly be influenced by management. may largely be out of the control of incumbent management, there are other factors that can clearly be influenced by management. Considering each of the factors discussed above, for instance, we would argue that a good management team can increase both the number of and the returns on available projects by
- taking projects that exploit any economies of scale that the firm may possess; in addition, management can look for ways it can create economies of scale in the firms existing operations.
- establishing and nurturing cost advantages over its competitors; some cost advantages may arise from labor negotiations, while others may result from long-term strategic decisions made by the firm. For instance, by owning and developing SABRE, the airline reservation system, American Airlines has been able to gain a cost advantage over its competitors.
taking actions that increase the initial cost for new entrants into the business
; one of the primary reasons Microsofts was able to dominate the computer software market in the early 1990s was its ability to increase the investment needed to develop and market software programs.
increasing brand name recognition
and value through advertising and by delivering superior products to customers; a good example is the success that Snapple experienced in the early 1990s in promoting and selling its iced tea beverages.
nurturing markets in which the companys differential advantage is greatest
, in terms of either cost of delivery or brand name value. In some cases, this will involve expanding into foreign markets, as both Levi Strauss and McDonalds did in the 1980s in order to exploit their higher brand name recognition in those markets. In other cases, this may require concentrating on segments of an existing market as The Gap did, when it opened its Banana Republic division, which sells upscale outdoor clothing.
improving the firms reputation for customer service and product delivery;
this will enable the firm to increase both profits and returns. One of the primary factors behind Chryslers financial recovery in the 1980s was the companys ability to establish a reputation for producing quality cars and minivans.
developing distribution channels that are unique and cannot be easily accessed by competitors
. Avon, for instance, emplyed large sales force to go door-to-door to reach consumers who could not be reached by other distribution channels.
- g
etting patents on products or technologies that keep out the competition and earn high returns
; doing so may require large investments in research and development over time. It can be argued that Intels success in the market for semiconductors can be traced to the strength of its research and development efforts and the patents it consequently obtained on advanced chips, such as the Pentium.
While the quality of management is typically related to the quality of projects a firm possesses, a good management team does not guarantee the existence of good projects. In fact, there is a rather large element of chance involved in the process; even the best laid plans of the management team to create project opportunities may come to naught if circumstances conspire against them – a recession may upend a retailer, or an oil price shock may cause an airline to lose money.


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Hit Man Sentenced To 17 Years In Hotel Heir Murder
WHITE PLAINS, N.Y. (CBSMiami/AP) — A hit man was sentenced Thursday to more than 17 years behind bars for killing South Florida millionaire Ben Novack Jr. and his mother under the direction of the millionaire's wife.
Alejandro Garcia's 210-month prison term was well under federal sentencing guidelines because he had cooperated with prosecutors almost from the moment of his arrest. His trial testimony last year helped put away Narcy Novack and her brother, Cristobal Veliz, on charges they arranged the 2009 killings.
Garcia admitted that he had helped kill Novack's husband, Ben Novack Jr., in a suburban New York hotel where his travel company was managing an Amway convention. Novack, 53, was bashed with dumbbells in his bed and had his eyes sliced with a knife. Garcia also said he killed Bernice Novack, who was 86, by smashing her in the face with a plumber's wrench at her Fort Lauderdale home.
Ben Novack's father built the Fontainebleau hotel in Miami Beach.
Garcia's attorney, Susanne Brody, asked Judge Kenneth Karas for a 15-year sentence, saying the information he provided investigators was "harrowing, extraordinary, frightening and detailed."
Karas acknowledged that Garcia's cooperation was important. Prosecutors said it led to six convictions in all and told the judge they supported a below-the-guidelines sentence. But Karas said it was also important "to acknowledge Mr. Garcia's heinous criminal conduct."
"Mr. Garcia bludgeoned to death an elderly lady," the judge said. "and did the same, with blunt instruments and sharp instruments, to Mr. Novack."
Garcia, 35, a Nicaraguan immigrant, faces deportation after his sentence is served.
Narcy Novack and her brother are serving life sentences after being convicted last year of orchestrating the killings. Prosecutors said Novack feared that her husband would divorce her and a prenuptial agreement would bar her from the multimillion-dollar family estate.
(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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2011 Investment Climate Statement - Lithuania
Fighting the challenges of a global financial crisis and an economic slowdown, Lithuania boasts a strong banking sector, educated workforce, good quality of life at relatively low cost, and the legal protections afforded by the rule of law. Red tape and the lack of an effective national strategy to attract new investment prevent the investment climate from being even better. However, the government is actively trying to attract new investment and improve the business and investment climate.
The government affords foreign investors protection equal to that provided to domestic investors, and sets few limitations on their activities. Foreign investors have the right to repatriate or reinvest profits without restriction, and can bring disputes to the International Center for the Settlement of Investment Disputes. In 2008, Lithuania was removed from the Special 301 Watch List because intellectual property rights (IPR) protection in the country has significantly improved over the past several years. Lithuania offers special incentives, such as tax concessions, to strategic investors, and has completed nearly all major privatizations. Nevertheless, U.S. executives report burdensome procedures to obtain licenses and residence permits as well as corruption, particularly in the lower and middle ranks of government. According to preliminary data from the Lithuanian Statistics Department, as of mid-2010, the United States was the 11th largest investor in the country, with investments totaling 356 million USD (2.7 percent of total FDI).
Overview of Foreign Investment Climate
Up until the second quarter of 2008 Lithuania was one of the fastest growing economies in Europe, with GDP growth of 7.8 percent in 2006, 9.8 percent in 2007 and 2.9 percent in 2008. After contracting by 14.7% in 2009 due to global economic crisis, the economy is slowly regaining momentum. GDP grew 0.6% y-o-y to Q3 2010. Overall, the economy is expected to expand 0.5% in 2010 before accelerating to 3% in 2011.
Lithuania offers investors a diversified economy, investment laws that conform to EU standards, a well-educated workforce, the region's best-developed road network, a stable democratic government and banking system, membership in the European Union, and proximity to Eastern European markets. EU Structural Funds amounting to more than USD 12.4 billion from 2007 to 2013 should provide a boost to the economy. Lithuania's income levels still lag behind the rest of the EU, with per capita GDP (at purchasing power parity) of approximately 53.4 percent of the EU average.
Invest Lithuania (IL) is the government's principal agency dedicated to attracting foreign investment. In addition to its offices in Vilnius and several other Lithuanian cities, IL has representative offices in Belgium, Kazakhstan and the United States (Chicago).
To attract more FDI the government of Lithuania needs to do a better job of promoting the country. The government also needs to create clustered or geographically concentrated investments in certain sectors. Government initiative is needed to centralize the process of starting a business, such as a "one stop shop" for residency, land use and business registration. More flexible labor regulations would also encourage FDI. Transportation barriers, especially insufficient air links with European cities, remain an impediment to investment, as does the lack of open, transparent information on tax collections and government procurement. The present Lithuanian government is making efforts to address these barriers to investment, working with the private sector, and has begun to offer limited financial incentives to attract key investment in Lithuania.
Openness to, and Restrictions Upon, Foreign Investment
Lithuania's laws assure equal protection for both foreign and domestic investors. No special permit is required from government authorities to invest foreign capital in Lithuania. Foreign investors have free access to all sectors of the economy with some limited exceptions:
-- The Law on Investment prohibits investment of foreign capital in sectors related to the security and defense of the State.
-- The Law on Investment also requires government permission and licensing for commercial activities that may pose risks to human life, health, or the environment, including the manufacturing of, or trade in, weapons.
-- Non-Lithuanians are generally not able to buy agricultural or forest land. As part of its EU accession agreement, however, Lithuania must eliminate this restriction by 2011. The restriction does not apply to most non-Lithuanian individuals and organizations that have engaged in agriculture in Lithuania for at least three years. This restriction also does not apply to organizations that have established representative or branch offices in Lithuania.
The Law on Investment specifically permits the following forms of investment in Lithuania:
-- Establishment of an enterprise or acquisition of a part or whole of the authorized capital of an operating enterprise registered in Lithuania;
-- Acquisition of securities of any type;
-- Creation, acquisition, and increase in the value of long-term assets;
-- Lending of funds or other assets to business entities in which the investor owns a stake, allowing control or considerable influence over the company; and
-- Performance of concession or leasing agreements.
Foreign entities are allowed to establish branches or representative offices. There are no limits on foreign ownership or control. Foreign investors can contribute capital in the form of money, assets, or intellectual or industrial property.
Lithuanian law protects foreign investments and investors' rights, and the judicial system is generally effective at upholding the enforcement of contracts. Foreign investors are free to enforce their rights by applying to the courts of Lithuania or directly to the International Center for Settlement of Investment Disputes under the Washington Convention of 1965.
Foreign investors have the right to repatriate profits, income, or dividends, in cash or otherwise, or to reinvest the income without any limitation, after paying taxes. The law establishes no limits on foreign ownership or control.
State institutions have no right to interfere with the legal possession of foreign investors' property. In the event of justified expropriation, investors are entitled to compensation equivalent to the market value of the property expropriated. The law obligates state institutions and officials to keep commercial secrets confidential and requires compensation for any loss or damage caused by illegal disclosure.
Foreign investors are treated equitably in privatization programs. The government has privatized most state enterprises and property, and the State Property Fund is responsible for managing and privatizing state assets. Major assets still under government control include the railway company (Lietuvos Gelezinkeliai), Lithuania's three international airports (Vilnius, Kaunas, and Klaipeda) and Lithuanian post (Lietuvos Pastas). Foreign investors purchased the majority of state assets privatized since 1990. These included companies in the banking, transportation, and energy sectors. Some foreign companies have complained about a lack of transparency or discrimination in certain privatization transactions.
The State Property Fund screens the performance record and size of companies bidding on state or municipal property and has halted privatizations when it determined that the bidders were not suitable, i.e., for criminal or other reasons.
Measure |
Year |
Index/Ranking |
TI Corruption Index |
2010 |
5 |
Heritage Economic Freedom |
2010 |
29 |
World Bank Doing Business |
2011 |
23 |
MCC Gov't Effectiveness |
MCC Rule of Law |
MCC Control of Corruption |
MCC Fiscal Policy |
MCC Trade Policy |
MCC Regulatory Quality |
MCC Business Start Up |
MCC Land Rights Access |
MCC Natural Resource Mgmt |
Conversion and Transfer Policies
The national currency is the litas. The Law on Foreign Currency also allows individuals and organizations to use the euro for domestic cash and non-cash payments and settlements; it allows individuals and organizations to use other foreign currency for making non-cash payments and settlements when both parties in the transaction agree to do so. There are no restrictions on the transfer or conversion of litas.
Lithuania has maintained a currency board since 1994. On February 1, 2002, the government pegged the litas (LTL) to the euro (EUR) at the rate of LTL 3.4528 to EUR 1. Prior to that date, the peg was LTL 4 to USD 1. The government backs the litas with gold and foreign currency reserves.
Lithuania entered the EU's exchange rate mechanism (ERM II) in June 2004. Its plans to adopt the euro in 2007 failed because inflation slightly exceeded the allowable limit. Lithuania will continue to pursue membership in the Euro zone, but the impact of the economic crisis may prevent entry before 2014, according to government officials and analysts from the private sector.
Expropriation and Compensation
Lithuanian law permits expropriation on the basis of public need, but requires compensation at market value in convertible currency. The law requires payment of compensation within three months of the date of expropriation in the currency the foreign investor requests. (If the government determines compensation in litas, it uses the official exchange rate on the date of this determination.) The compensation must include interest (calculated on the basis of the LIBOR rate of the relevant currency) from the date of publication of the notice of expropriation until the payment of compensation. The recipient may transfer this compensation abroad without any restrictions.
There have been no cases of expropriation of private property by the Government of Lithuania since 1991. There is an ongoing process to restitute property expropriated in the World War II and Soviet eras.
Dispute Settlement
The Lithuanian legal system stems from the legal traditions of Continental Europe and is in accordance with the EU's acquis communautaire. New laws enter into force upon promulgation by the President (or in some cases the Chairman of the Parliament (Seimas) and publication in the official gazette Valstybes Zinios ("State News").
General jurisdiction courts, dealing with civil and criminal matters, comprise the core of the Lithuanian court system: the Supreme Court, the Court of Appeals, district courts, and local courts. In 1999, Lithuania established a system of administrative courts to adjudicate administrative cases, which generally involve disputes between government regulatory agencies and individuals or organizations. The administrative court system consists of the Highest Administrative Court and District Administrative Courts.
The Constitutional Court of Lithuania is a separate, independent judicial body that determines whether laws and legal acts adopted by the Seimas, President, and the Government conform to the Constitution.
Lithuania's legal system provides several possibilities for commercial dispute resolution. Parties can settle disputes in local courts or in the increasingly popular independent, i.e., non-governmental, Commercial Court of Arbitration. Lithuania also recognizes arbitration by foreign courts. Courts generally operate independently of government influence. There have been no major disputes between foreign investors and the Government of Lithuania since independence in 1991.
Lithuania passed the current Enterprise Bankruptcy Law in 2001. This law applies to all enterprises, public establishments, commercial banks, and other credit institutions registered in Lithuania. The law provides a mechanism to override the provisions of other laws regulating enterprise activities, assuring protection of creditors' rights, recovery of debts, and payment of taxes and other mandatory contributions to the State. This law establishes the following order of creditors' claims: claims by creditors that are secured by a mortgage/pledge of debtor; claims related to employment; tax, social insurance, and state medical insurance claims; claims arising from loans guaranteed or issued on behalf of the Republic of Lithuania orits Government; and other claims.
Lithuania is a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (Washington Convention) and is a member of the International Center for the Settlement of Investment Disputes. It is also a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Performance Requirements and Incentives
Lithuania provides special incentives to strategic investors. The criteria by which the national government or a municipality designates a strategic investor vary from project to project. In general, the national government requires that a strategic investor invest 50 million USD or more. Municipalities may tie the designation criteria to additional or other factors, such as the number of jobs created and the environmental benefits that accrue. Strategic investors' rewards include special business conditions, such as favorable tax incentives for up to ten years. Significant tax incentives apply to foreign investments made before 1997. Municipalities may grant special incentives to induce investments in municipal infrastructure, manufacturing, and services. The government intends to publish a long-delayed national investment strategy in 2011 which should expand the array of incentives provided to potential investors.
Government Resolution No. 918 of July 15, 2003 requires offset agreements as a condition for awarding contracts to procure military equipment valued at more than LTL 5 million (USD 2 million). Offsets are obligations the government imposes that require companies to provide services, create jobs, or purchase local goods as a condition for the contract's award. Bidders can negotiate the exact terms of the offset agreement with the government.
Foreign investors have the same rights as local firms to participate in government-financed and -subsidized research and development (R&D) programs.
There are no requirements for local content or purchasing from local sources as a condition for investment or public purchases. Municipalities may ask investors to develop roadways or other infrastructure adjoining their project, but such proposals are subject to negotiation. Lithuania's EU membership has given foreign firms the additional right to appeal adverse governmental rulings to the European Court of Justice. Lithuania's "Law on Public Procurement," which came into effect on March 1, 2003, is in accordance with the EU's acquis communautaire.
Some foreign investors, including U.S. citizens, report difficulties in obtaining and renewing residency permits. U.S. citizens can stay in Lithuania no more than 90 days without a visa (and no more than 90 days in any six-month period). Those who stay longer face fines and deportation. In principle, Lithuanian embassies and consulates abroad are able to assist by reviewing documentation required for a permit. However, foreigners may actually submit residency permit applications only after they arrive in Lithuania. By law, the Migration Department is allowed six months to issue U.S. citizens residence permits, but in recent years they have done so in less than three months, on average. Nevertheless, the Embassy is aware of cases where American citizens were asked to leave Lithuania solely because their application for a residence permit was not processed within the 90 days for which they were initially admitted. Processing for work permits or other documentation must be started before applying for a residence permit. Documentary requirements are extensive and change frequently. In addition, dependents of those who hold residency permits for less than two years are barred from receiving a residency permit, unless the permit holder earns a salary more than three times the monthly average, is coming to teach at a high level educational institution or is under an exchange program recognized by Lithuania, or who is investing in Lithuania. Other exemptions may apply. The Embassy recommends that those applying for residency permits, who intend to reside in Lithuania with dependents, investigate the ability of their dependents to obtain derivative residency permits.
Right to Private Ownership and Establishment
Foreign and domestic private entities have the right to establish, acquire, and dispose of interests in business enterprises. The laws of the Republic of Lithuania protect rights and legal interests of both domestic and foreign investors. Lithuania has privatized most state run enterprises. Where state-owned companies and private companies compete for public or private contracts, they do so on legally equal terms.
The Law on Investments describes the basic principles defining the treatment of foreign investments in Lithuania. Foreign investors have the same rights and obligations relating to commercial activities as local investors. They have the right to transfer profit (income) owned as private property without any restrictions after paying taxes. Generally, foreign investors have free access to all sectors of the economy. However, Lithuanian law prohibits investment of capital of foreign origin in sectors relating to security and defense of the State. Lithuania introduced a law restricting monopolies in 1993.
Protection of Property Rights
Lithuanian law protects foreign investments and the rights of investors in several ways.
-- The Constitution and the Law on Foreign Capital Investment protect all forms of private property against nationalization or requisition.
-- International agreements offer protections, such as the 1958 New York Convention on the recognition and enforcement of foreign arbitral awards.
-- Bilateral agreements with the United States and other western countries on the mutual protection and encouragement of investments reinforce these protections.
-- The Law on Capital Investment in Lithuania and other acts regulate customs duties, taxes, and relationships with financial and inspection authorities. This law also establishes the procedures of dispute settlements.
-- In the event of justified expropriation, applicable law entitles investors to compensation equivalent to the market value of the expropriated property.
-- Foreign investors may defend their rights under the Washington Convention of 1965 by applying to either Lithuanian courts or directly to the International Center for the Settlement of Investment Disputes. To date, Lithuania has not been involved in any major investment disputes with American or other foreign investors.
-- State institutions and officials are obligated to keep commercial secrets confidential and must pay compensation for any loss or damage caused by illegal disclosure. Lithuania legalized the possibility of hiring private bailiffs to enforce court judgments in 2003.
Lithuania's commercial laws conform to EU requirements, and include the principles of the free establishment of companies, protection of shareholders' and creditors' rights, free access to information, and registration procedures. These laws include the following: the "Company Law" and "Law on Partnerships" (last modified January 1, 2004), the "Law on Personal Enterprises" (January 1, 2004), the "Law on Investments" (1999), the "Law on Bankruptcy of Enterprises" (2001), and the "Law on Restructuring of Enterprises" (2001).
The Civil Code of 2000 governs commercial guarantees and security instruments. It provides for the following types of guarantee and security instruments to secure fulfillment of contractual obligations: forfeiture, surety, guarantee, earnest money, pledge, and mortgage.
Lithuania joined the World Intellectual Property Organization
(WIPO) in 2002 and the World Trade Organization (WTO) in 2001. Lithuania, as a member of the EU, has ratified WIPO's Internet treaties (Copyright Treaty and the Performances and Phonograms Treaty) as listed below. It is also a signatory to the following IPR-related treaties and conventions:
-- The Paris Convention for the Protection of Industrial Property in 1990 (effective May 22, 1994);
-- The Berne Convention for the Protection of Literary and Artistic Works of 1886 (effective December 14, 1994);
-- The Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations of 1961 (effective July 22, 1999);
-- The Nice Agreement Concerning International Classification of Goods and Services of 1957 (effective February 22, 1997);
-- The Madrid Protocol of 1989 (effective November 15, 1997);
-- The Patent Cooperation Treaty of 1970 under the auspices of WIPO (effective July 5, 1994);
-- The Conventions on the Grant of European Patents (December 1 2004);
-- The WIPO Copyright Treaty of 1996 (effective March 6, 2002);
-- The WIPO Performances and Phonograms Treaty of 1996 (effective May 20, 2002); and
-- The Trademark Law Treaty of 1994 (effective April 27, 1998).
Lithuania enacted regulations in 2002 to protect confidential test data that pharmaceutical firms submit for patent and trademark registration. Following EU accession, Lithuania extended protection to member states' trademarks, designs, and applications. Lithuania brought its national law protecting biological inventions into compliance with EU Directive 98/44 in June 2005. In recent years, Lithuania has significantly improved IPR protection and in 2008 it was removed from the Special 301 Watch List. Lithuania's parliament amended the country's Copyright Law in October 2006, bringing it into line with the EU's copyright directive.
Transparency of the Regulatory System
The World Bank's "Doing Business" survey, which evaluates according to ten criteria the ease of doing business in 181 economies, gave generally high marks to Lithuania, ranking it 23rd in 2011 (out of 183 countries ranked). Lithuania scored especially high in the categories of "registering property" (seventh) and "enforcing contracts" (seventeenth). It did less well in the categories of "starting a business" (87th) and "protecting investors" (93rd).
The legal system of the Republic of Lithuania recognizes generally accepted principles of the legal regulation of investments and subjects both Lithuanian and foreign investors to equal business conditions.
Red tape remains a problem. Local business leaders complain that bureaucratic procedures often are not user-friendly and that the interpretation of regulations is too often inconsistent and unclear.
Businesses and private individuals complain of corruption, including in the process of awarding government contracts and the granting of licenses and permits.
Businesses also complain that they have little opportunity to influence new legislation and that new legislation sometimes appears with little advance notice. Modern technology, however, may alleviate this problem: the parliament's website contains all draft laws currently before it. Ministries also post many, but not all, draft laws under consideration.
In 2009 the GOL changed the corporate income tax rate to 20 percent (on January 1, 2010 it was changed back to 15%), personal income tax to 21 percent (earlier 24 percent) and value added tax to 21 percent (earlier 18 percent). The GOL also eliminated most VAT exemptions at this time, excepting pharmaceutical products, heating utility services and non-periodical publications. In 2006, the GOL introduced an annual real estate tax ranging from 0.3 percent to one percent of the market value of a property. Municipalities are given a right to determine the exact rate, on real estate owned by individuals but used for commercial purposes. In practice, this tax is usually set at a one percent level.
Efficient Capital Markets and Portfolio Investment
Government policies do not interfere with the free flow of financial resources or allocation of credit. In 1994, Lithuania accepted the requirements of Article VIII of the Articles of Agreement of the International Monetary Fund to liberalize all current payments and to establish non-discriminatory currency agreements. Lithuania ensures free movement of capital and does not plan to impose any restrictions. The government imposes no restrictions on credits related to commercial transactions or the provision of services, nor on financial loans and credits. There are no restrictions on non-residents opening accounts with commercial banks.
The banking system is stable, well-regulated and conforms to EU standards. Currently there are 9 commercial banks holding a license from the Bank of Lithuania, 8 foreign bank branches, one financial institution controlled by EU licensed foreign banks providing services with an established branch, 5 foreign banks representative offices, the Central Credit Union of Lithuania and 67 credit unions. 209 EU banks provide cross-border services in Lithuania without a branch operating in the country, and 2 financial institutions controlled by EU licensed foreign banks providing services without a branch. Following the completion of the bank privatization process in 2002, the share of banking capital held by foreign investors increased to 90 percent. Nearly all foreign banks are under German or Scandinavian control. As of September 30, 2010 the total assets of major Lithuanian banks were:
-- SEB – 8.8 billion USD
-- Swedbank – 6.9 billion USD
-- DnB Nord – 4.5 billion USD
There is no restriction on portfolio investment. The right of ownership to shares acquired through automatically matched trades is transferred on the third working day following the conclusion of the transaction. The Vilnius Stock Exchange is part of the OMX group of exchanges and offers access to 80 percent of all securities trading in the Nordic and Baltic marketplace. OMX is owned by the U.S. firm NASDAQ and the Dubai Bourse.
Three authorities supervise financial markets. The Bank of Lithuania supervises commercial banks and credit unions, the Securities Commission supervises the securities market, and the Insurance Supervisory Commission supervises insurance companies. The law requires these institutions to cooperate with appropriate EU authorities.
Lithuanian law does not regulate hostile takeovers.
Competition from State Owned Companies
According to Lithuanian law state companies have no privileges in conducting business and competing for supply and/or project implementation contracts. The embassy has no records of complaints from either foreign or domestic companies regarding cases of state companies exercising superiority in competing for business.
Corporate Social Responsibility
Although Lithuania's high private sector contribution to GDP is evidence of a strong private sector, the concept of Corporate Social Responsibility (CSR) is not very widely known in Lithuania, especially in rural areas where there is little or no foreign investment. The understanding of the concept is frequently linked to philanthropy, rather than partnership. The private sector appears more interested in its own business affairs rather than displaying a real commitment to social issues.
There are, however, an increasing number of important private-public partnerships, as well as social projects, where the private sector is involved including volunteerism, restoration, and scholarships. Furthermore, successful participation in the European Union market will require high standards of CSR. Foreign investors in Lithuania have played a very important role in promoting CSR. In 2009, the government developed and approved a National Corporate Social Responsibility Development Program for 2009-2013 aimed at promoting CSR. Also, in the past few years there has been a growing interest from both government and NGOs alike in promoting CSR values by organizing competitions and awards ceremonies such as the Social and Labor Ministry's annual Socially Responsible Business Awards Ceremony, Confederation of Industrialists' Awards and others.
Political Violence
Lithuania has not witnessed any incidents involving politically motivated damage to projects and/or installations. There are no nascent insurrections, belligerent neighbors, or other politically-motivated violence.
There is a general perception in Lithuanian society that Corruption, especially on lower levels, is common. More than 50 governmental institutions regulate commerce in one way or another, and the resulting division of responsibilities creates plenty of opportunities for corrupt practices.
Large foreign investors report few problems with corruption. On the contrary, most large investors report that high-level officials are often very helpful in solving problems fairly. In general, foreign investors say that corruption is not a significant obstacle to doing business in Lithuania and describe most of the bureaucrats they deal with in Lithuania as reasonable and fair.
Small and medium enterprises (SME) perceive themselves as more vulnerable to petty bureaucrats and commonly complain about extortion. SMEs often complain that excessive red tape virtually requires the payment of "grease money" to obtain permits promptly. Business owners also maintain that some government officials view SMEs as likely tax-cheats and smugglers, and treat the owners and managers accordingly.
Paying or accepting a bribe is a criminal act. Lithuania established in 1997 the Special Investigation Service (Specialiuju Tyrimu Tarnyba) specifically to fight public sector corruption. The agency investigates approximately 100 cases of alleged corruption every year, but has yet to bring charges against high-level officials for corrupt practices. Lithuania ratified the UN Convention Against Corruption in December 2006. Lithuania also hosts a representative office of Transparency International (TI). TI ranked Lithuania 46th in its 2010 Perceptions of Corruption Index with a score of 5. (TI considers countries with a score below 5.0 to have serious problems with corruption.) Police, medical personnel and local government, among others, were cited by TI as prone to corruption.
Bilateral Investment Agreements
Lithuania joined the European Union on May 1, 2004. In doing so, it joined all EU trade agreements with third countries and international organizations. Lithuania also delegated its international trade policy function to the EU Council and the European Commission. As a consequence, Lithuania had to revoke all of its bilateral free trade agreements signed before its accession to the EU.
The United States and Lithuania have signed and ratified the following agreements and treaties:
-- A charter of partnership between the United States, Estonia, Latvia, Lithuania;
-- A bilateral investment treaty that ensures reciprocal investment protection and encourages additional investment;
-- Treaty on avoidance of double taxation;
-- Treaty on legal assistance in criminal matters;
-- Extradition treaty;
-- Agreement on social security; and
-- Agreement on cooperation in preventing proliferation of weapons of mass destruction and promotion of defense and military relations.
OPIC and Other Investment Insurance Programs
Coverage from the Overseas Private Investment Corporation (OPIC) is available for U.S. investments in Lithuania. Lithuania is a member of the Multilateral Investment Guarantee Agency (MIGA). Lithuania's fully convertible currency, the litas, is pegged to the euro, while its exchange rate against the U.S. dollar fluctuates on a daily basis. On January 10, 2011, the exchange rate was 1 USD = 2.68 LTL. Lithuania plans to adopt the euro, but is unlikely to meet the Euro Zone's entry requirements until 2014, at the earliest.
Lithuanian labor is inexpensive compared with Western Europe. However employment regulations are often stricter than those in other EU countries according to some foreign investors.
By law, white-collar workers have a 40-hour workweek. Blue-collar workers have a 48-hour workweek with premium pay for overtime. There are minimum legal health and safety standards for the workplace. However, worker complaints indicate that employers do not always observe these standards. Lithuania is a member of International Labor Organization (ILO) and adheres to its conventions.
The government adjusts the monthly minimum wage regularly. At the end of 2009, Lithuania's minimum monthly wage was 335 USD. The average monthly wage was approximately 614 USD in 2010. Average salaries decreased by approximately 5 percent in 2010 compared to 2009.
Membership in the EU, and the consequent ability of Lithuanians to work legally in EU countries, generated, in the past, a sizable outflow of labor causing a shortage of skilled construction workers, truck drivers, shop assistants, medical nurses, and medical specialists. This outflow led in the past to extremely low (4.3 percent) unemployment compared with other EU members. However, the current slowdown in the global and local economy has resulted in a sizeable increase in unemployment. Lithuania's registered unemployment in the third quarter of 2010 was 17.8 percent. Expert forecasts for 2011 unemployment range between 14.5 percent and 16 percent.
Lithuania's management-labor relations are good. Labor unions are not considered influential in Lithuania, according to some foreign investors. There have been no major strikes or labor disruptions since the country's independence in 1991.
Some business leaders claim that the 2002 Labor Law lacks flexibility and increases the cost of production by making it harder to hire and fire labor. This is a particular complaint of businesses that experience seasonal fluctuations in labor needs.
Lithuania has one of the best-educated workforces in Central and Eastern Europe. The percentage of the Lithuanian population with higher education is two times higher than the EU-15 average and is also the highest in the Baltic States. Lithuania is among the five EU members with the highest percentage of people speaking at least one foreign language, with ninety percent of Lithuanians speaking at least one other language – mostly Russian, English and Polish – apart from their mother tongue.
Hi-tech studies are currently among the most popular areas of study at the universities of Lithuania. Major Lithuanian companies specializing in knowledge driven sectors of industry, such as the information and telecommunications sector, biotechnology, laser technology, etc., cooperate closely with the leading Lithuanian technological universities, which provide the companies with R&D services and offer students specialized on-the-job training programs. In this way companies are able to attract a large number of qualified specialists for both local and international projects.
Foreign Trade Zones/Free Trade Zones
Lithuania has two Free Economic Zones (FEZs): one in Klaipeda, the country's largest seaport, and one in Kaunas, an air, road, and rail hub. There are currently 15 businesses operating in the Klaipeda FEZ, and eight investors in the Kaunas FEZ.
Lithuania's EU accession agreement permits the indefinite operation of existing FEZs, but precludes the establishment of new ones. Foreign firms operating in the FEZs have the same opportunities and benefits as local companies.
Companies operating within the zones enjoy:
-- Six years' exemption from corporate income tax and a 50 percent reduction during the following 10 years, if the company invests more than 1.2 million USD;
-- Exemption from real estate tax; and
-- A 50 percent discount on land leases.
Foreign Direct Investment (FDI) Statistics
The United States is the eleventh largest investor in Lithuania. American investments (stock) totaled 356 million USD (mid-2010), accounting for approximately 2.7 percent of total FDI in Lithuania. There are about 135 U.S. companies doing business in Lithuania, and about 500 U.S. companies have representatives in the country. The largest U.S. investors include Thermo Fisher, Moog, IBM, Philip Morris, Kraft Foods, Mars Incorporated, and Paulius and Associates.
As of 30 September 2010, cumulative FDI in Lithuania amounted to LTL 34,190.2 million (USD 13.68 billion), up USD 197.6 million (1.5 percent) from the beginning of the year. This cumulative FDI is equivalent to a FDI per capita of LTL 10,484 (USD 4,193).
FDI, By Country/Group
Country/Group |
Amount (USD billions) |
Percent of total FDI |
Poland |
1.6 |
11.8 |
Sweden |
1.5 |
11.1 |
The Netherlands |
1.4 |
10.4 |
Germany |
1.3 |
10.2 |
10.6 |
78.2 |
1.04 |
7.6 |
[Source: Lithuanian Department of Statistics.]
The largest investors in Lithuania include (estimated figures by the firms themselves):
Firm Name |
Country |
Business Category |
Investment Amount (USD millions) |
Orlen |
Poland |
Oil Refining |
1,400 |
Teo Lt |
Sweden/Finland |
Telecommunications |
643 |
Thermo Fisher |
Biological Research |
290 |
Moog, Inc. |
Medical Equipment |
200 |
Indorama |
Thailand |
Plastics |
145 |
Philip Morris |
Tobacco Products |
130 |
Kraft |
Confectionary |
60 |
Mars, Inc. |
Pet Food |
40 |
StoraEnso |
Finland/Sweden |
Wood Products |
36 |
Denmark |
Shipping |
30 |
Paroc |
Finland |
Construction Material |
20 |
Lithuanian cumulative investment abroad at the end of the third quarter of 2010 amounted to LTL 4,817.5 million (USD 1.9 billion), down USD 296 million, or 13.3 percent, from the beginning of the year.
Lithuanian Investment Abroad
Country |
Amount (USD millions) |
Percent of total FDI |
Latvia |
370 |
19.2 |
The Netherlands |
358 |
18.6 |
Russia |
185 |
9.7 |
Poland |
173 |
9.0 |
Cyprus |
170 |
8.9 |
[Source: Lithuanian Department of Statistics.]


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EDITOR'S NOTE: Utah became the 18th state to legalize same-sex marriage when a federal judge struck down a state constitutional amendment Friday (Dec. 20). Robert Shelby, a judge in the U.S. District Court of Utah, ruled a 2004 state amendment defining marriage as only between a man and a woman violates equal protection and due process rights under the U.S. Constitution. The amendment and two Utah laws deny the state's "gay and lesbian citizens their fundamental right to marry and, in so doing, demean the dignity of these same-sex couples for no rational reason," Shelby wrote. Utah's voters approved the amendment with about a two-thirds majority.
Utah Acting Attorney General Brian Tarbet quickly requested an "emergency stay" of the decision while an appeal is prepared for the 10th Circuit Court of Appeals in Denver. County clerk offices in Utah began issuing marriage licenses to same-sex couples the same day, however. Friday's ruling came only a day after the New Mexico Supreme Court made that state the 17th in the country to legalize gay marriage. It came only a week after Clark Waddoups, another federal judge in Utah, essentially decriminalized polygamy in the state.
WASHINGTON (BP) — Same-sex marriage has gained legal standing in more than one-third of America's 50 states.
The New Mexico Supreme Court unanimously ruled Thursday (Dec. 19) gay marriage is constitutional in the state, bringing to 17 the number of states that have legalized such unions. In addition, the District of Columbia has approved same-sex marriage.
The legal victory by same-sex marriage advocates added to their successes in an unprecedented year for the movement. In 2013, marriage between people of the same sex has become legal in eight states, the most of any year so far.
The New Mexico decision produced another setback for defenders of the biblical and traditional view of marriage as between a man and a woman. It came less than a week after a federal judge in Utah essentially decriminalized polygamy and about a month after two states, Hawaii and Illinois, legalized gay marriage.
Southern Baptist ethicist Russell D. Moore, one of biblical marriage's defenders, responded to Thursday's ruling by acknowledging the trend and encouraging his allies.
"It seems that every week there comes a new development on the marriage debate, and New Mexico is the latest," said Moore, president of the Ethics & Religious Liberty Commission, in a statement for Baptist Press. "We should steel our resolve to articulate a biblical vision of marriage, to love our neighbors who disagree with us and to fight and contend for God's purpose for marriage, the family and for religious liberty in these changing times."
The battle over what constitutes legal marriage will continue elsewhere in the country. The issue is in the courts in several states, and gay marriage advocates are seeking electoral or legislative victories in others. Through 2016, the Human Rights Campaign — the country's largest political organization promoting lesbian, gay, bisexual and transgender rights — has targeted Arizona, Colorado, Indiana, Michigan, Nevada, Ohio and Oregon at the ballot box or in the legislature.
The 17 states that have legalized same-sex marriage generally are located in three sections of the country, plus Hawaii: The Northeast (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont); Midwest (Illinois, Iowa and Minnesota); and West (California, New Mexico and Washington).
Before Hawaii, Illinois and New Mexico, same-sex marriage also became legal during 2013 in California, Delaware, Minnesota, New Jersey and Rhode Island.
Gay marriage proponents recognized the significance of the latest victory, as well as the others that have preceded it in recent years.
"The past few years have seen an amazing show of support for the freedom to marry for all loving and committed couples," said Elizabeth Gill, staff attorney with the ACLU Lesbian Gay Bisexual and Transgender Project. The ACLU represented same-sex couples in the New Mexico case. "Today's victory in New Mexico brings us one step closer to the day when marriage equality is a reality nationwide."
In November, Fred Sainz, HRC's vice president of communications and marketing, told supporters in an email, "LGBT equality advanced more in 2013 than in any other year and at a pace never before seen."
Meanwhile, Andrew Walker, the ERLC's director of policy studies and another defender of biblical marriage, said after Hawaii and Illinois legalized gay unions, "No one denies that the wind is to the backs of the marriage revisionist movement, and this will likely continue for some time…. [S]ome knees may buckle if cultural fame is what you're striving after, but what matters right now — as it has for all times — is that Christians bear witness to the truth, despite uncomfortable circumstances."
The New Mexico high court's ruling came in response to a division among counties in the state on the issue. Eight counties had been issuing marriage licenses to same-sex couples, some in response to orders from judges, according to the Albuquerque Journal. The state's remaining 25 counties had not been issuing licenses to gay couples.
In its opinion, the justices said barring same-sex couples from being married violated equal protection rights under the state constitution.
"Prohibiting same-gender marriages is not substantially related to the governmental interests advanced by the parties opposing same-gender marriage or to the purposes we have identified," the state Supreme Court said. "Therefore, barring individuals from marrying and depriving them of the rights, protections, and responsibilities of civil marriage solely because of their sexual orientation violates the Equal Protection Clause [of the state constitution]."
Among the governmental interests promoted by those opposed to legalizing gay marriage but rejected by the justices were "responsible procreation and child-rearing." The court said, "Procreation has never been a condition of marriage under New Mexico law, as evidenced by the fact that the aged, the infertile, and those who choose not to have children are not precluded from marrying."
Instead, the court ruled, "It is the marriage partners' exclusive and permanent commitment to one another and the State's interest in their stable relationship that are indispensable requisites of a civil marriage."
Jim Campbell, legal counsel for the Alliance Defending Freedom, said the government's intent in "recognizing marriage is to bring together one man and one woman as husband and wife to be a father and a mother to any children their union produces."
"The New Mexico Supreme Court ignored that time-tested understanding of marriage and replaced it with the recently conceived notion that marriage means special government recognition for close relationships," Campbell said in a written release. "This unfortunate result prevents New Mexicans from deciding the future of marriage — its very definition as well as its role in society — through an inclusive democratic process. Regrettably, the court constitutionalized a view of marriage previously unknown in the Land of Enchantment and never chosen by the people."
An effort will be made in the state legislature to bring the issue to voters as a constitutional amendment.
Gov. Susana Martinez, a Republican, expressed her disapproval of the matter being decided by the high court.
"I'm confident that most New Mexicans believe, like I do, that it should have been settled by a vote of the people," Martinez said, according to the Journal. "Instead, the Supreme Court stepped in and rendered their decision. While there will surely be intense debate about this decision moving forward, I encourage New Mexicans to continue to respect one another on their discourse, as this is an important issue for many New Mexicans on both sides."
The New Mexico high court's ruling came as no surprise. In August, it rejected the religious free exercise arguments of Jonathan and Elaine Huguenin, a Christian couple who operate a photography business. The justices ruled the Huguenins violated the state's ban on sexual orientation discrimination by refusing to photograph a same-sex ceremony.
That decision demonstrated one of the byproducts of the growing legalization of gay marriage: The loss of freedom to exercise religious beliefs by citizens who believe marriage is only between a man and a woman. Photographers, bakers and others who have refused to participate in same-sex ceremonies because of their Christian convictions have lost in court or suffered financially despite their appeals to the right to exercise their religion.
Tom Strode is Washington bureau chief for Baptist Press. Art Toalston contributed to this report. Get Baptist Press headlines and breaking news on Twitter (@BaptistPress), Facebook (Facebook.com/BaptistPress) and in your email (baptistpress.com/SubscribeBP.asp).


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Over the last few months, the interest surrounding cryptocurrency derivatives products has been growing fast. For some time now, open interest in CME's bitcoin futures has been breaking records. Bakkt's futures platform began testing contracts on Monday and the company says there are participants from all around the world. Elsewhere, bitcoin derivatives provider Ledgerx is listing a huge $100K call option with a December 2020 expiry.
Also read: Honestnode Founder Discusses the First Stablecoin Built on Bitcoin Cash
Bakkt Begins Testing Its Daily and Monthly Physically-Settled Bitcoin Futures
On July 22, the Intercontinental Exchange's (ICE) long-awaited cryptocurrency futures trading subsidiary Bakkt began testing its futures contracts. "Today kicks off user acceptance testing ICE markets for the Bakkt Bitcoin daily and monthly futures contracts. Testing is proceeding as planned with participants from around the world," Bakkt tweeted on Monday. The parent company of the New York Stock Exchange, ICE announced the BTC futures offering about a year ago, but Bakkt's physically-settled bitcoin futures was delayed. In order to provide the new derivatives products, Bakkt partnered with the ICE futures exchange so the service can provide clearing infrastructure for physical delivered bitcoin futures contracts to market participants. "Participants will undergo applicable AML/KYC reviews, consistent with CFTC-regulated markets and connect via ICE's existing infrastructure," Bakkt's website explains.
According to Bakkt's blog, the company is testing two different kinds of products traded at ICE Futures U.S. and cleared at ICE Clear US. Former Coinbase executive and Bakkt COO, Adam White, said the launch will usher in a new standard for accessing cryptocurrency markets. "Compared to other markets, institutional participation in crypto remains constrained due to limitations like market infrastructure and regulatory certainty — This results in lower trading volumes, liquidity, and price transparency than more established markets like ICE's Brent Crude futures contract, which has earned global trust in setting the world's price of crude oil," White opined. The Bakkt executive added:
Bakkt's efforts to help institutions launch safely into this market is the right stuff for the future.
Other firms like Erisx and Ledgerx are also planning to offer physically-settled bitcoin futures contracts. On June 25, news.Bitcoin.com reported on Ledgerx's designated contract market (DCM) license approval by the U.S. Commodity Futures Trading Commission (CFTC) to offer these products to institutional and retail investors.
The Centurion Contract: A $100K BTC Call Option
The U.S.-based crypto derivatives and clearing platform Ledgerx announced on July 17 that current investors can purchase a $100K call option called the "Centurion Contract" with a December 2020 expiry. Essentially this means that the price has to be $100,000 per BTC by 2020 and the market capitalization of BTC would be over 2 trillion dollars. "How much would you pay today for the right to buy one bitcoin for $100,000 in December 2020?" Ledgerx tweeted. "$100K option now available to Ledgerx customers, coming to all investors soon," the company teased.
"Dozens and dozens of institutions got back to us saying we'd be interested in trading a contract like this," Chief Executive Officer Paul Chou told the press. "I understand $100,000 is a large number, but a lot of us who've been in this space remember Bitcoin at $1, and then it hit $10 and $100 and $10,000. A $100,000 contract doesn't even make us blink."
Excited to share that @ledgerX completed the first SOC 1 Type 2 audit for a bitcoin company, and received unqualified opinion. Audit conducted by @friedmanllp.
— LedgerX (@ledgerx) July 19, 2019
Following May's Records, CME Group's Bitcoin Futures Touch All-Time Highs in June
During the first week of June, news.Bitcoin.com briefed our readers on the Chicago Mercantile Exchange (CME Group) seeing a massive amount of interest for its bitcoin futures in May. For instance, the exchange posted 33,000 contracts ($1.3 billion notional value) on May 13. After that record day, CME's open interest for its bitcoin derivatives positions saw an all-time high of approximately 5,190 contracts the following week. The rise in interest in CME's bitcoin products had continued to grow larger in June.
"CME Bitcoin futures reached a record $1.7B in notional value traded on June 26, surpassing the previous record by more than 30% — The surge in volume also set a new open interest record of 6,069 contracts as institutional interest continues to build," CME Group stated.
CME Group has reaped the benefits of more investors when the Chicago Board Options Exchange (Cboe) announced it was ending its bitcoin futures products back in March. Being one of the largest derivatives marketplaces worldwide, CME Group followed Cboe's trail after the company launched its futures products in December 2017. For a while, Cboe smashed records and led the race between the two global market companies. Many spectators have assumed that the latest bullish prices have been due to professional traders and larger financial institutions who want to get in on these types of markets, even with the large price fluctuations.
Overall, people think that large institutions gearing up to offer cryptocurrency derivatives and other types of crypto products will continue to entice institutional investors who would rather use traditional investing terminals. Two weeks ago, Fidelity International launched a cryptocurrency trading simulator, and according to reports a few days ago, the company has also filed an application to be a New York Trust. Prior to launch, Bakkt will have to obtain approval from the New York Department of Financial Services (NYDFS) as well. The company Seed CX revealed two of its subsidiaries, Seed Digital Commodities Market and Zero Hash, were granted the 20th and 21st Virtual Currency License approvals from the NYDFS. When the company announced the approvals, Seed CX disclosed it also has plans to offer a market for CFTC-regulated digital asset derivatives products.
What do you think about the recent interest in cryptocurrency derivatives products? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Pixabay, CME Group, Twitter, and Bakkt.
Do you want to keep an eye on moving cryptocurrency prices? Visit our Bitcoin Markets tool to get real-time price updates, and head over to our Blockchain Explorer tool to view all previous BCH and BTC transactions.
The post Bitcoin Futures Update: Bakkt Testing, CME Breaks Records, and a $100K Call Option appeared first on Bitcoin News.


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Fire and Aviation Directorate
The Fire and Aviation Directorate (FAD) is a diverse, professional organization dedicated to providing national direction, leadership, policy, standards, and operational oversight. FAD works with state and field offices to ensure a safe, cost effective and efficient fire and aviation management program in support of the national Bureau of Land Management (BLM) mission. The FAD is headquartered at the National Interagency Fire Center (NIFC) in Boise, Idaho, where it works with seven other federal agencies to manage wildland fire in the United States. BLM's fire and aviation program has three organizational levels: 1) the national office provides leadership and oversight, and develops policy, procedures and budgets for the fire and aviation program; 2) state offices are responsible for coordinating policies and interagency activities within their state; and 3) field offices are responsible for on-the-ground fire management and aviation activities, often partnering with other agencies to maximize rapid initial attack. The BLM, a leader in our nation's wildland fire management efforts, undertakes a broad range of activities to safely protect the public, the natural landscape, wildlife habitat and recreational areas for our country's citizens. The program includes fire suppression, preparedness, predictive services, fuels management, fire planning, community assistance and protection, prevention and education, and perhaps most significant, safety. The BLM meets these challenges by fielding highly trained and skilled professional firefighters and managers. Reducing the risk and consequence of wildland fires continues to grow in importance; however, suppression operations and safety continue to be the core of the overall fire program.


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Daily Roundup: June 30, 2011
Starting to Sweat: Maximum and minimum temperatures increased in all 50 states this year, according to a new NOAA report. New York Times
Frack Yeah! New Jersey is the first state to ban hydraulic fracturing. TreeHugger
Doing Swimmingly: The NRDC released a list of the best and worst beaches in the U.S. MNN
Solar Backfire: The German grid is overwhelmed by the amount of renewable energy being generated by homes. Reuters
Heh: Sen. James Inhofe, a climate-change skeptic, will not deliver the kickoff speech at the denialist International Conference on Climate Change this year because he's feeling "under the weather." New York Times
--Mimi Dwyer


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This textbook is the first edition of Meeting Jesus in the Sacraments. For the latest edition of the textbook go to Meeting Jesus in the Sacraments (Second Edition) ISBN 1-59471-734-6
Meeting Jesus in the Sacraments reveals the sacraments as the definitive way that Jesus remains present to the Church and the world today. The text explores concrete ways for students to understand the sacraments, participate in their rites, and benefit from their graces.
The text is organized around the traditional definition of sacrament from the Catechism of the Catholic Church—an efficacious sign of grace, instituted by Christ and entrusted to the Church, by which divine life is dispensed to us by the work of the Holy Spirit. This definition is clarified by organizing the chapters around four dimensions of the sacrament: memorial, celebration, communion, and transformation.
Through regular placement of "For Reflection" panels and assignments that focus on deeper research, developing a personal and communal prayer life, and active transformation of self and society, this text allows students to come to know Jesus through participation in the sacraments and the grace of their effects. Selections from Catholic blogs and profiles of saints offer a practical application of the sacrament to teenagers.
Each chapter includes several special features:
Panel activities that help the students foster total learning in hands (service), hearts (prayer), and mind (academic challenges).
Review questions for each main section.
Several Journal Assignments for deeper thought and reflection.
Key vocabulary terms set off in margin panels.
A Learn by Doing project for each chapter that provides a longer-term assignment.
A Called to Prayer feature offering text from a prayer relevant to the chapter theme.
(© 2010) The Subcommittee on the Catechism, United States Conference of Catholic Bishops, has found that this catechetical high school text is in conformity with the Catechism of the Catholic Church and fulfills the requirements of Core Course IV of the Doctrinal Elements of a Curriculum Framework for the Development of Catechetical Materials for Young People of High School Age.


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Hair Loss Myths Debunked
The Most Common Hair-Loss Myths Debunked
Hair loss is one of the most potent fears for men of a certain age. In fact, recent research has shown that a quarter of men aged 25-29 are more concerned with losing their locks than they are with other age-related inevitabilities like skin aging or going gray.This is primarily because we've come to associate a full head of hair with virility. The prospect of going bald is often felt as a loss of masculinity or power, a deficit that can usher in a crisis as exemplified by numerous cases of male menopause visible in a neighborhood near you. This subconscious fear is so pervasive that it's created an industry worth over $1 billion. Men seeking to treat their scalps can now select from a variety of "solutions" ranging from topical treatments and drugs, to transplants and, worryingly, wigs.
And yet, for a fear that is so common, the actual science of hair loss remains shrouded in mystery, myth and patent misinformation. Many of us have been raised on the belief that washing your hair daily will speed up the shedding process or — equally insane — that standing on your head or having a cow lick on your scalp will jumpstart lazy follicles. The internet doesn't help either: The supposed cures for hair loss are often as questionable as the causes they cite.
Part of this confusion is due to the sheer variety of things that can provoke hair loss and thinning. There are, of course, genetic factors to consider, but other culprits include reduced blood circulation and chronic inflammation around the hair bulb. There are also a host of scenarios that can trigger reactive hair loss. These include fatigue, stress, anemia, thyroid problems, medication and drastic changes in diet that exclude essential vitamins and minerals (sulfur amino acids, fatty acids, metals, metalloids and vitamins B5, B6, H, PP, A, E and C in particular). Environmental factors that can provoke shedding include silicone-based shampoos and heavy waxes, which literally asphyxiate the scalp. Needless to say, heavy smoking and drinking have enormous impacts too.
For most guys, the fear usually sets in when they're greeted with a shower floor covered in their own hair. The good news is that our hair "capital" consists of 100,000-150,000 hair shafts and it's perfectly normal to shed as many as 100 of these per day. Hair grows in cycles — anagen (the growth phase), catagen (the degradation phase) and telogen (the resting phase), and in a healthy scalp this cycle repeats around 25 times. So chill out — the hair will usually grow back. As you get older, the number of hair follicles will reduce but that doesn't necessarily mean you're going to end up as bald as a coot (especially if you're smart enough to take preventative action — see this month's roundup for suggestions).
The bad news is that the state of your shower floor might be a sign of male pattern baldness, a hereditary hormone imbalance that causes hair follicles to start shutting completely down. In cases of MPB, testosterone (your BFF since adolescence) is converted to dihydrotestosterone (DHT) by an enzyme called 5-alpha reductase. DHT is your follicles' enemy, as it slows down hair production and sometimes stops it completely.
It's important to distinguish between normal/chronic thinning and MPB (also known as androgenic alopecia). In MPB, your hair usually starts to recede at the hairline before thinning at the crown, and the process can start surprisingly early for some guys. The actual pattern of loss is usually a good indicator of MPB. For some guys this can be a deceptively subtle shift that takes place over several decades. For others, it can happen in a couple of years and can be very distressing for a guy still in his 20s or 30s.
It doesn't help that run-of-the-mill anti-hair-loss products are unlikely to have any real impact in cases of MPB. The solution, if you really feel you need one, involves either a) graciously accepting the hand you were dealt (recommended) or b) opting for hardcore meds, the kind that invariably come with their own set of side effects (including, I hasten to add, erectile dysfunction and depression). Minoxidil and finasteride tend to be the most popular drugs, the former going by the infamous trade name Rogaine.
Or there's surgery. Over the last few years, procedures like follicular unit extraction (FUE) have become increasingly popular, especially after rather public endorsements from the likes of Wayne Rooney and Calum Best. Unlike the dodgy-looking transplants from the 70s, FUE involves individually removing healthy follicles and painstakingly grafting them one-by-one to the bald patches. FUE is a laborious and rather expensive process (about $4.50 a hair, thank you very much) so, unless you happen to be on a soccer player's salary, it might be worth employing the services of a decent barber who can hide loss with some nifty "graduation" at the sides. Failing that, there's always the option of a good buzz cut.
Hair Loss


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GM Melik Annotates an Aeroflot Win |
By GM Melikset Khachiyan | |
March 2, 2009 | |
A2 section in the Aeroflot Open (February 16-25, Moscow). Khachiyan, who scored 7/9 and posted a 2675 FIDE performance told CLO, "I played most of my games against young and hungry players, so it was a lot like an experience vs. youth event for me." Khachiyan said that he thinks he played very well in Aeroflot because unlike in most American Opens, he was able to play one game, recover and then prepare for the next. His favorite game of the event was the following win over IM Arseny Kargin, shown below with annotations by "GM Melik" himself. 2930 1.e4 c5 2.Nc3 Nc6 3.f4 In previous white games vs. Sicilian I preferred 3.Bb5, but faced some trouble in gaining an advantage. Here I'm trying to play another sideline, which also brings some complications. 3...g6 4.Nf3 Bg7 5.Bb5 I believe this bishop move is much more interesting than 5.Bc4. 5...Nd4 6.0–0 6...a6 6...Nxb5 7.Nxb5 d5 8.e5 a6 9.Nc3 d4 10.Ne4 is another main line. 7.Bd3 d6 8.Nxd4 cxd4 9.Ne2 Nf6 10.Kh1 Nd7 I think it's still too early to play this move, even though my opponent played it very quickly, and confidently. Black should wait a bit and first play 10...0–0 11.Nxd4 Nxe4 12.Bxe4 Bxd4 with better chances to equalize the game. 11.Bc4 11...b5?! Too optimistic. Black needed first to complete development with 11...0–0 or 11...e6, to control the d5 square. 12.Bd5 Rb8 13.f5! Very strong move. Now I'm going to control the e6 square, and create an attack on the kingside. 13...0–0 14.d3 Nb6? Another bad decision. Black should immediately play 14...Bb7 with the idea to trade the bishop. He completely underestimated the power of the white bishop. 15.Bb3 d5 16.Nf4! Bb7 17.Bd2 Another strong move. White simply stops the a6-a5 march, and also creates the threat of playing Ba5 and pinning the black knight. 17...Qd7 18.Qe1 Pointing to the kingside. White wants to play Qh4 at the right time. 18...Nc4 18...e5 19.fxe6 fxe6 20.exd5 exd5 21.Qe6+ Qxe6 22.Nxe6 was the last chance for Black. He didn't go for this because he thought the endgame would be torture for him, so he chose another way to create complications, but it didn't work out. 19.fxg6 hxg6 20.exd5 Bxd5 20... Nxd2 was also absolutely hopeless. 21.dxc4 bxc4 22.Ba4! Bxg2+ 23.Kxg2 Qxa4 24.Nd5 It's over now. 24...Qc6 25.Qe4 Qb7 26.Nxe7+ Kh7 27.Rf4! Bf6 28.Qxb7 Rxb7 29.Rxf6 Rxe7 30.Bb4 Re2+ 31.Kf1 Rxh2 32.Kg1 Rh8 33.Rxf7+ Kg8 34.Rf8+ Kg7 35.Rxh8 Rxh8 36.Rd1 1–0 |
GM Melikset Khachiyan of Los Angeles won the


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The specter of milk jumping to $7 a gallon as U.S. farm programs expire probably will be held off because regulators will need time to write new pricing rules, even if Congress fails to avert a so-called dairy cliff.
House and Senate agriculture committee chiefs Sunday backed a one-year extension of the 2008 farm bill, trying to stave off higher prices that emerge when expired rules force the U.S. Department of Agriculture to revert to policies set in 1949. Neither chamber has voted on the plan, or on narrower alternatives, with both houses set to resume work today. Still, should Congress fail to deal with milk costs that may double without action, price increases may be slowed while the USDA seeks to turn back time, analyst Dave Kurzawski said.
"Everyone won't start selling their butter and cheese to the U.S. government on Jan. 2," Kurzawski, a consultant at INTL FCStone Inc. in Chicago, said in an interview. "We are going to need to find a resolution to this, though."
The most recent farm law, passed in 2008, expired Sept. 30. Without a replacement, agricultural programs return to earlier rules that are the basis of all subsequent legislation. The effects of that transition have been delayed because of the growing seasons of different crops. Dairy, a year-round business, is the first major commodity affected. In November, the USDA estimated the price of a gallon of fresh whole milk at just under $3.54.
Draft bill
The draft bill agreed upon by the farm-panel leaders would extend the expired farm law through Sept. 30, provide disaster aid for producers affected by this year's drought, and make changes to milk policy. The new dairy program would in part manage supply by setting production limits for farmers who enroll in a market-stabilization program. House Speaker John Boehner, an Ohio Republican, has opposed that concept, calling it worse than current policies that he termed "Soviet-style." The proposal wasn't on a list of measures released last night to be considered by the House during today's session.
President Harry S. Truman's farm policy from 1949 required the government to buy supplies of a product until its price approached "parity" with the cost immediately before World War I. Adjusted for a century of inflation, the USDA milk-support price today would be $39.08 per hundred pounds, more than double the dairy futures price in Chicago on Dec. 28.
This price-support policy, which once brought rivers of dumped milk and free cheese for the poor, was gradually abandoned as U.S. agriculture law became more market oriented.
Dairy damage
Massive government purchases "would dramatically increase government spending, would force consumers to pay significantly more for dairy products, and would impose long-term damage to the dairy industry," the Washington-based International Dairy Foods Association wrote in a letter to Agriculture Secretary Tom Vilsack last week.
The group, which represents Kroger Co., the largest U.S. grocery chain, and Nestle SA, the world's biggest food company, urged the USDA to "proceed in a thoughtful and deliberate manner" in any move to implement the 1949 law. It has also opposed the dairy plan included in the proposed farm-bill extension for potentially limiting the supply of milk. The National Milk Producers Federation, an organization of farmers and dairy cooperatives, has supported that plan.
Vilsack hasn't offered specifics as to how the USDA would intervene in milk markets, while warning consumers that inaction on a new farm bill will have far-reaching consequences.
'Shocked' consumers
"Consumers, when they go in the grocery store, are going to be a bit shocked when instead of seeing $3.60 a gallon for milk, they see $7 a gallon," he said Sunday on CNN's "State of the Union" broadcast. "That's going to ripple throughout all of the commodities if this thing goes on for an extended period of time."
Should Congress not reach a deal on either a separate extension of agriculture legislation or its inclusion in a plan to avert the so-called fiscal cliff of tax increases and spending cuts that are set to take effect Tuesday, a new farm law may be delayed until at least March.
The House Agriculture Committee plans to start drafting new legislation on Feb. 27. Its Senate counterpart will debate a new bill "soon," should an extension fail, Chairwoman Debbie Stabenow, D-Mich., said Sunday. The Senate passed a five-year plan in June, followed by the House farm panel in July. The full House never voted on a plan. The Congress that convenes Jan. 3 must restart work on a farm bill.
'Considerable' time
In the meantime, implementing 1949 rules would "take a considerable amount of time," House Agriculture Committee Chairman Frank Lucas said in an e-mail last week. The Oklahoma Republican said Vilsack should follow the federal rulemaking process, including a public comment period, before moving ahead.
Even if the USDA immediately embraced the 1948 law, the effects might not reach consumers for weeks, said Mike North, a senior risk-management adviser at First Capitol Ag in Platteville, Wis. Swift action on rules is unlikely, he said.
Government purchases would follow specifications that not all processors could immediately meet, he said in a telephone interview. Then, products must be packaged and distributed to retailers. Because the commodity is only about half the total cost of a dairy product, doubling the price paid to farmers may make $4 milk "only about $6 milk once it reaches the consumer," he said.
Still, the possibility of higher prices may push up milk futures, and raising consumer costs, said FCStone's Kurzawski. "The uncertainty isn't good for the industry," he said.
Farm bills, which Congress usually passes every five years, set policy and fund USDA programs including food stamps and crop subsidies. They frequently lapse before a new law is passed. The bill that ended in September took effect on June 18, 2008, more than nine months after its predecessor expired.


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It's time for a storage upgrade, but your budget won't bear the burden of both a blazing new VelociRaptor hard drive and an extra injection of Kingston RAM. Decision time: if you're looking to improve general performance on the cheap, do you shell out for more RAM or a high-performance hard disk?
PCWorld Lab analyst Thomas Luong loves to take his work home, and this week he found himself idly running performance tests on his home machine (between dinner with the family and horsing around with his kids) just to see what happened.
Thomas ran a full suite of performance tests using two different hard drive configurations, a Samsung 128 GB SSD and a VelociRaptor 300 GB 10,000 RPM hard-disk drive. To make things a little more interesting he ran each test using two different RAM configurations, first with a 3 GB setup and then with a hodgepodge of memory he found lying around on his desk that added up to 12 GB.
The results he brought in to work this morning were surprising, and not just because 9 a.m. is far too early to be writing about RAM configurations; if you take a look at his results, you'll find almost no appreciable performance increase between an SSD and the super-fast VelociRaptor drive. However, the WorldBench 6 score for each drive setup jumped about 15 points after Thomas added a few sticks of extra RAM.
If you're not familiar with our testing methodology, that jump indicates roughly a 15 percent improvement in the performance of common consumer apps like PhotoShop, FireFox and WinZip. While programs that make heavy use of the hard drive (like Roxio's VideoWave Movie Creator) may benefit from the faster read/write performance of a high-speed drive like the VelociRaptor, Thomas' after-hours tests prove adding more RAM has the potential to shave your time spent on workday tasks (like video editing) in half.
In the eternal battle between performance and price, upgrading your rig with 8 GB of RAM is a far more worthwhile use of your money than trading up to a boutique high-speed drive like the 300 GB VelociRaptor.
Alex Wawro is PCWorld's enterprising editorial assistant and all-around roustabout. Add @awawro to your Twitter feed and spread the love.
The PCWorld Lab loves optimization, philly cheesesteaks and long walks on the beach. Stalk us on Twitter @PCWorldLab for the latest updates on hot tech and cool tweaks!


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I am going to be installing one or two motion detector lights to cover my backyard. I would like the ability to "override" the motion detector. What I mean by this is that I would like to be able to flip a switch that turns and keeps the lights turned on regardless of if there is motion or not. When the light switch gets turned off I would like the operation of the motion detector to return to normal.
I first thought about just "jumping" the motion detector with the switch, but I am concerned if the motion detector would be able to handle live power on both sides of its relay when the relay is turned off.
So my questions are, is it safe to do this "jumping" method? If not are there any methods to do this or any common practices for this type of feature?


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Julian C. Juergensmeyer
Professor of Law Emeritus Center for the Comparative Study of Metropolitan Growth- Education
J.D., with honors, Duke University School of Law
Certificate des Etudes Politiques, University of Bordeaux
A.B., summa cum laude, Duke University
- Specializations
- Biography
In 2014-15, Julian Juergensmeyer, Ben F. Johnson Chair in Law, celebrated his 50th year of teaching law. He practiced law for two years with Squire, Sanders and Dempsey immediately after graduating from Duke Law School but left the practice to join the law faculty of Indiana University (Bloomington). He left there for additional law study in Europe and law teaching in Ethiopia.
On his return to the United States, Juergensmeyer taught both civil and common law at Tulane University and then had a 30-year stint at the University of Florida before joining the Georgia State Law faculty as its first endowed chair-holder. He also serves as adjunct professor of City and Regional Planning at Georgia Institute of Technology. He is also professor of law emeritus of the University of Florida College of Law where — in addition to teaching — he served as director of the Growth Management Studies Program, the Center for Agricultural Law, the LL.M. in Comparative Law Program, and the Cambridge Warsaw International Trade Summer Law Program.
His teaching and research specialties are land use planning law, property law and comparative land use and environmental law and his books and articles on those topics are nearing 100 in number. They include a co-written treatise/hornbook on Land Use Planning and Development Regulation Law that is widely used by law and planning practitioners and frequently cited by courts including the Supreme Court of the United States.
Juergensmeyer is considered a pioneer in the development of infrastructure finance oriented regulations such as impact fees and has participated in developing growth management and capital improvement programs and litigation in regard to them in over 25 states. In recent years. he has also focused on smart growth regulations designed to encourage use of renewable energy and resource conservation.
As a strong believer in the globalization of law and the legal profession, he has taught and lectured throughout Europe, North and South America, and Africa and has held the title of visiting professor at such foreign universities as the Universities of Frankfurt, Aarhus, Warsaw, Strasbourg, Limoges and British Columbia. His visiting appointments in the United States include Duke, Louisiana State University and Hastings College of the Law.
- Publications